KW Realtor NEWS: New Stimulus Package Proposes Tax Credit for Home Buyers
Last week, the Senate verbally approved the Fix Housing First Act, an important amendment to their version of the Economic Stimulus Bill. The piece of legislation and the Stimulus Bill are still awaiting Senate and House negotiations, but could provide all home buyers of primary residences over the next year with a tax credit of $15,000 or 10 percent of the cost of the home, whichever is less. The credit will not need to be repaid unless the home is sold within two years of purchase. This Senate’s version of the tax credit, if implemented, will replace, or “sunset” the current $7,500 credit.
As leaders in the real estate industry, it is important to recognize the relevance of this amendment which could set the housing market on a course toward recovery.
If you are not familiar with this Act, please click here for more information.
Click here to download a step-by-step guide for contacting your Senator or Representative via phone or email.
Click here for a composed note to send to you Senator or Representative.
Should the legislation become a law, it will act as a major incentive for home buyers and, coupled with several years of pricing corrections could boost the number of home sales around the country.
MARKET WATCH Sites Key Reasons To Buy Now
A recent article on Market Watch, a part of The Wall Street Journal Digital Network, gave several reasons why now is a great time to buy a home, and quoted Jay Papasan, vice president of publishing and executive editor, Keller Williams Realty.
Papasan urged buyers and their agents to “ask for price reductions, improvements, closing costs – whatever – and the seller, desperately trying to get a contract, is very likely to work with you.” He added that “when the market starts improving, your negotiating power starts to diminish,” meaning that buyers need to move before inventory gets smaller and the market ticks up.
The article sites Your First Home as a reliable resource for consumers and identifies “Five Reasons to Buy a Home This Year,” which include better affordability, large inventory, builder discounts, low mortgage rates and the current $7,500 federal tax credit for first-time home buyers.
Use this information and Papasan’s important negotiating tips when talking to your clients. Also stay on the forefront of their minds with a copy of Your First Home – a must read for consumers aspiring to purchase a home.
By: Twitter Buttons
February 10th, 2009 at 2:55 pm
FOR THOSE WHO BOUGHT IN JANUARY:
THE HOUSE PASSED THE BILL FOR A $7500 TAX CREDIT THAT DOESN’T NEED TO BE REPAID AND IS AFFECTIVE FOR PURCHASES OF HOMES AFTER 01/01/09.
THE SENATE CHANGED IT TO A $15,000 TAX CREDIT BUT IT IS ONLY AFFECTIVE FOR PEOPLE WHO PURCHASES AFTER IT’S SIGNED.
IF THE SENATE PASSES THERE’S TODAY, THEN THERE WILL BE A MEETING BETWEEN MEMBERS OF THE SENATE AND MEMBERS OF THE HOUSE TO WORK OUT THE DIFFERENCES BETWEEN THE 2 BILLS.
I BOUGHT IN JANUARY SO I OBVIOUSLY WANT THE $15,000 TAX CREDIT THE SENATE PROPOSED BUT WITH THE START DATE THE HOUSE PROPOSED.
YOU NEED TO MAKE YOUR VOICE HEARD AND CONTACT YOUR SENATORS AND HOUSE REPRESENTATIVE. THIS IS AMERICA SO YOUR VOICE IS YOUR POWER. E-MAIL THEM OR CALL THEM. HERE IS A CONVENIENT NUMBER. CALL AND ENTER YOU ZIP CODE AND IT WILL GET YOU IN CONTACT WITH ALL OF YOUR CONGRESSMEN. DECISIONS ARE BEING MADE, DO IT NOW. 1-866-924-NAHB (6242)